I have the following comments here :

1. The company failed to communicate this dilution although it is perfectly legal to do so but in order to gain the market's trust,they would be better explain what they are doing and why. The fact that they need to raise capital is not a mystery.
They are also well aware of the effect of dilution.
on DEC 14,2007 they wrote :
"The financing with the Bank of Communications will be in the form of a bank loan and has no dilutive effect on Dakshidin shareholders"...and a few days later,they diluted the company : NOT GOOD FOR THEIR IMAGE. It is akin to treating private investors as a mere background noise and I don't like that.So, if they wrote this ,why don't they explain the recent dilution?

2.Some new big investors must have come on board to get those shares.
We do not know who he /they is/are but I see that as a positive sign of things to come.I would prefer if they did issue Warrants with an exercise date.

Estimated Float 2,500,000

Current Market Capitalization $13,012,666.00

So, my recommendation is that they beef up their PR with retail investors and fully disclose what they intend to do .A transparent company will gain the investor's confidence and increase the stability of the S/P.

For those of you that hold onto their shares at a higher average price than current ( I am one of them ),you can do several things from here : sell and move on or buy down ( as I do ) to average down or simply do nothing and wait for this story to grow.
In any case, I did say on this board that my timeline is for the long term so I will stick with the plan.

Happy holidays all!